The government has outlined its plans for the future running of the
BBC. Here are the main points:

Culture
Secretary Tessa Jowell set out the plans for the future of the BBC in a
consultation document Green Paper published today. She
told MPs the measures would ensure a "strong, independent
future" for the BBC which would remain "responsive and
accountable."

About
the licence fee, Ms Jowell said: "Although not perfect we believe
it remains the fairest way to fund the BBC."

The
Board of Governors, who have overseen the BBC since its foundation 80
years ago, will be replaced by two new bodies - The BBC Trust and formal
Executive Board.

The
Trust will oversee the licence fee and make sure the corporation fulfils
its public service role. The Executive Board will be responsible for
delivering the BBC's range of services from television to radio and
digital services.

The
reform is designed to answer critics who complain that the Board
currently faces a potential conflict of interest as the body which both
promotes the BBC's interests and acts as its watchdog.

The
future level of the licence fee is yet to be decided but a review of
alternative funding for the BBC will be carried out before the next
Charter renewal in 2016. BBC chairman Michael Grade said he
accepted the decision to abolish the board of governors. But he
expressed regret that the Government had not waited to see the results
of the BBC's own reforms aimed at separating the Corporation's
governance and management structures.

BBC
charter The
BBC's royal charter will run for another ten years, until 2016.

Tessa
Jowell said she wanted to secure the BBC's independence

The
board of governors will be scrapped.

It
will replaced by two bodies - the BBC Trust and an Executive Board.

Current
BBC chairman Michael Grade will be the first chairman of the trust,
which will represent the licence fee payer and will be responsible
for ensuring the BBC's independence.

The
trust will have significant levels of approval over BBC budgets and
strategies.

It
will also have the power to approve licences for BBC services,
testing them on behalf of the public.

The
new body will have to be accountable to licence fee payers,
including broadcasting meetings on the internet.

The
board will look after the day-to-day running of the BBC, and will be
headed by current director general Mark Thompson.

Licence
fee

The
licence fee will stay in place for the next 10 years.

The
government will decide on the right level for the fee after 2007,
and will look at alternative ways of funding the BBC after 2016,
including subscriptions.

The
possibility of sharing the licence fee with other public
broadcasters will be considered during the life of the next charter.

The
licence fee should be used for creative purposes, using the best
talent.

Programme
making

The
BBC should not chase ratings for ratings' sake, and its output
should not clash with its commercial rivals.

The
number of independent productions should be increased as the
corporation has exclusive access to licence fee funding.

There
should be specific programming for the UK's different communities,
and significant output made outside London.

The
BBC is expected to take a leading role in the development of digital
services in the UK, including the proposed analogue switch-off.

The
BBC will also fund schemes to help fund schemes for vunerable
consumers during this period.

Other
regulators

Broadcast
regulator Ofcom will be given increased powers to assess the
performance of the BBC, including assessing the impact of any
proposed new services.

A compulsory licence fee remains the "default option" to
fund the BBC, Culture Secretary Tessa Jowell said in 2002

She
dismissed suggestions that the government was planning to replace the
licence fee as "juvenile" speculation. Her comments come
after a panel advising the Conservatives recommended that the licence
fee should be scrapped and the BBC governors abolished.

Ms
Jowell said: "I think the licence fee will continue in the absence
of a better alternative."

The
government is conducting a review of the BBC in the run-up to the
renewal of its royal charter - which defines its role and funding - in
2006.

The report drawn up for the Conservatives by ex-BSkyB and Channel 5
executive David Elstein recommended replacing the compulsory fee with a
voluntary subscription to BBC services.

Ms
Jowell told a BBC-sponsored seminar on the future of the corporation
that she was ready to consider Mr Elstein's ideas.

But
she added: "Let me be clear that we have criteria against which we
will judge contributions.

"These
criteria are the extent to which they strengthen the BBC and the extent
to which they secure its independence." The charter review
would "seriously engage in looking at alternatives", she
added. "But in the absence of better alternatives the licence
fee remains the default option."

BBC
One's Panorama is held a debate about the future of the BBC in 2002.